D'Amico v. Johnston Partners

Summary

The Rhode Island Supreme Court held that a plaintiff seeking to substitute a bankrupt tortfeasor's liability insurer under G.L. 1956 § 27-7-2.4 is not required to do so before the conclusion of the tortfeasor's Chapter 11 bankruptcy proceedings. The court reversed the Superior Court's denial of the motion to substitute Evanston Insurance Co. for Garofalo & Associates, Inc., concluding that the statute imposed no such timing condition and that post-discharge substitution was consistent with the Bankruptcy Code.

Holdings

1. The appeal was not moot because the Superior Court's denial of substitution and its summary judgment ruling rested on the same conclusion that the bankruptcy proceedings extinguished D'Amico's claim; review of the substitution ruling therefore affected the controversy.
2. A party seeking substitution of an insurer under Rhode Island General Laws § 27-7-2.4 is not required to assert the claim against the insurer before confirmation of the debtor's Chapter 11 reorganization plan or the debtor's contemporaneous discharge. The statute does not permit the court to add that condition.

Questions Presented

1. Whether a plaintiff seeking to substitute a tortfeasor's liability insurer under Rhode Island General Laws § 27-7-2.4 must do so before the tortfeasor's Chapter 11 bankruptcy case is concluded and its reorganization plan is confirmed and discharged.
2. Whether the appeal was moot because the plaintiff did not separately appeal the Superior Court's summary judgment ruling in favor of the bankrupt tortfeasor.

Disposition

reversed_and_remanded